West Hartford Finance Director Expects $2 Million Budget Surplus

WEST HARTFORD — — The town's director of financial services projects a nearly $2 million operating budget surplus when the fiscal year ends June 30, according to a memo he sent to the town manager dated April 16.

Revenues are expected to come in at $238.89 million — $995,451 over budget – while expenses are expected to total $236.95 million, resuling in a $1.93 million surplus, according to the memo from Finance Director Chris Johnson. The town council's adopted 2012-2013 budget totals $237.66 million.

The board of education is to thank for a large portion of the savings, according to Town Manager Ronald Van Winkle.

The schools expect to come in $1.39 million below the $138.76 million budget, according to the memo. The savings are primarily due to lower out-of-district tuition spending than expected and savings in health care due to fewer claims than usual.

"More than five years ago the board of education spent every penny that was given to them," buying books and materials to use all the money at the end of the year, Van Winkle said. "It's only with the new superintendent and new town manager that we've worked out that they now return excess dollars to us rather than use them all."

The town typically has a surplus, Johnson said, but the October 2011 snowstorm left them with a $50,000 deficit at the end of fiscal year 2011-2012. The deficit was covered by the undesignated fund balance, the town's "rainy day" savings account.

The surplus will be added to that account, bringing the fund balance up to 8.3 percent of the general fund – higher than it has been in more than 10 years.

"Some of it will be used to offset one-time costs that we might have by year end," Van Winkle said. "If we can offset costs in next year's budget, we'll look at that at year end."

The town council approved a $241.43 million 2013-2014 budget earlier this week.

"Obviously, I'm very pleased," Van Winkle said about the expected surplus. "These are difficult times for local governments to balance their budgets."